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  home / resource library / search engine archives / october 2006 search engine news

What's New in Search - October 2006

Google Goes Tubing
Webcam artists unite! Google has acquired YouTube in an all-stock deal worth $1.65 billion. The news has sent Google shares to new highs, well over the $400 per share mark. Although YouTube has not turned a profit to date, and some predict that on-site advertising could alienate users, the deal has been very well received by financial analysts. What Google is really paying for is potential: YouTube is one of the ten most popular sites on the Internet, and it is also the major player in the rapidly growing online video industry. (Who doesn't love home movies of teens experimenting with fire crackers?) Detractors say that YouTube will soon be held accountable for the massive amounts of copyright infringement that its users are performing on a daily basis. Some predict that lawyers will be lining up to try and take a piece from Google's deep pockets. This seems like a fairly safe assumption, considering the precedent the legal community has set on going after corporate money.

Yahoo Trying to Face Google
Yahoo needs to keep up with the Brins and Pages. Google's recent deals with myspace and YouTube have put the pressure on the Sunnyvale company to make something happen. Entertainment and content used to be Yahoo's differentiators against Google, but it has been consistently losing out to Google in the fight for search engine market share. Now it appears that Google has hit Yahoo where it hurts. In an effort to add to the empire, Yahoo has been attempting to purchase Facebook, the second-most-popular social networking site (myspace is number one). The problem is that Facebook's 22-year-old CEO and founder is not willing to relinquish control. The site has been making money from its $200 million advertising deal with MSN and has previously turned away several interested suitors. Although Yahoo continues to be very profitable, the company needs to expand if it wants to keep pace with Google.

"MSN Search" Re-branded as "Windows Live Search"
Microsoft has been re-branding its Internet properties, converting them to "Live." Hotmail made the switch a few months ago from Hotmail to Windows Live Mail, and now it's MSN Search's turn. The engine still provides the same results; the only notable difference is some new logos and coloring. Microsoft may have big plans in the future for its new Live brands--we will keep you posted.

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